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Day: July 27, 2024

photo of a woman holding shopping bags
Premium Outlet - Mall - Retail

IOI Properties loves malls a lot. RM680 million is proof.

RM680 million is not a small sum of money. Not many companies could afford it. What’s the reason why a property developer is willing to pay a big amount to another property developer and buys their mall? What’s the longer term benefits? Really depends on the strategy which the developers are pursuing yeah. Let’s look at the latest acquisition news of a mall I frequent every other month; Tropicana Gardens Mall. The buyer is IOI Properties Group Bhd.

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Overseas

What’s up and down with France’s Property Market?

Since the Olympics is now in France, I looked at France’s property market and I realised that their property market is not doing well currently. Prices have been falling after a high point in 2011 (both in slower increase and later started to fall below 0 after Q1 2021.

If we look at the chart below, COVID could have played one part as the prices started to slow down its increase after Covid arrived in 2020 and this has turned into a fall in property prices starting in Q1 2021 and this has continued until currently.

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woman calculating her receipts
ABCs of Property Investment

Which rose faster, inflation or the house price?

How true is this statement, don’t you wonder? I think some time back, I wrote that I am okay with home prices rising just 1 percent every year! At the same time, inflation can rise by 3 percent every year. Want to see this in number? How much do we spend every year?

Based on a typical RM5,000 salary, that’s RM60,000 per year and inflation of 3 percent means a reduction of the value of this RM60,000 by RM1,800. Meanwhile, a RM500,000 home rising at just 1 percent per year is RM5,000 yeah. This is why property is often mentioned as the best hedge against inflation.

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